More capital put into production and business

This is a necessary solution, helping businesses and people have more capital to put into production and business.

People do administrative procedures at the Tax Department of Tay Ho District. Photo: Quang Thai

Expected tax payment extension of nearly 84,000 billion VND

According to the draft Decree, the Ministry of Finance proposes to extend the deadline for payment of value added tax, corporate income tax, personal income tax and land rent as per Decree No. 12/2023/ND-CP dated April 14, 2023 of the Government, with the implementation period in 2024.

In particular, the Ministry of Finance proposed to extend the VAT payment for May and June 2024 for cases of monthly VAT payment and the second quarter of 2024 for cases of quarterly VAT payment; extend the VAT payment for July 2024 for 4 months, the VAT payment for August 2024 for 3 months and the VAT payment for September 2024 for cases of monthly VAT payment and the third quarter of 2024 for cases of quarterly VAT payment.

According to the above plan, the total value-added tax extension from May to September 2024 and the second and third quarters of 2024 is about VND 52,400 billion. However, the state budget revenue in 2024 will not decrease because enterprises must pay to the state budget no later than December 31, 2024.

The Ministry of Finance also proposed to extend the tax payment deadline for the provisional corporate income tax payment for the second quarter of the 2024 corporate income tax period. The extension period is 3 months from the end of the corporate income tax payment deadline according to the provisions of the law on tax administration. The estimated provisional corporate income tax payment for the second quarter of the 2024 corporate income tax period to be extended is about VND 27,600 billion and the state budget revenue in 2024 will not decrease.

At the same time, the Ministry proposed to extend the deadline for payment of value-added tax and personal income tax for the tax amount payable in 2024 by business households and individual businesses, to December 30, 2024 at the latest. It is estimated that the amount of tax for business households and individual businesses to be extended is about VND 440 billion, and the state budget revenue in 2024 will not decrease.

The Ministry of Finance also proposed to extend the deadline for land rent payment for 50% of the land rent payable in 2024 by enterprises, organizations, households, and individual business households subject to Article 3 of this Decree that are being directly leased land by the State under the decision or contract of a competent state agency in the form of annual land rent payment, for a period of 6 months from May 31, 2024. It is expected that the amount of land rent to be extended is about 3,200 billion VND, and the state budget revenue in 2024 will not decrease.

Thus, the estimated total tax amount extended according to the policies in the draft decree is nearly 84,000 billion VND.

Show listening and companionship

Previously, implementing Decree No. 12/2023/ND-CP, statistics showed that 157,955 taxpayers were granted an extension. The total amount of tax and land rent extended was VND 96,964.2 billion; of which the value added tax extended was VND 57,427.9 billion; the amount of corporate income tax extended was VND 35,957.2 billion... The Government's implementation of the above policies has contributed to removing difficulties for businesses and people, accelerating the recovery and development of the economy.

With the continued proposal to extend tax this time, economic expert Nguyen Minh Phong acknowledged that the above policy once again demonstrates the Government's listening and accompanying businesses. Tax extension will support businesses and people facing difficulties by reducing financial costs, supporting liquidity and cash flow, without negatively affecting the state budget. With this policy, businesses have more financial resources to overcome difficulties, maintain production and business, without having to borrow and pay interest. In fact, in previous implementations, the tax and land rent extension policy had a huge effect because it could reach businesses immediately, without any time delay.

“Along with support policies, it is necessary to continue promoting administrative procedure reform to reduce indirect costs and create a favorable business environment,” economic expert Nguyen Minh Phong suggested.

General Director of Vietnam Engineering and Industry Corporation Hoang Huu Yen shared: “In recent years, the Government has issued many policies to support businesses and people to restore production and business, especially the policy of extending tax and land rent. Instead of having to pay, the extended corporate tax revenue becomes a temporary source of capital to help businesses rotate capital, serve production, business, and pay wages to workers.”

Source